This program is truly innovative and can help many borrowers achieve their dream of homeownership without the burden of a down payment.
MortgageDepot’s 0% Down Program is designed to assist qualified borrowers in purchasing a home without the need for a down payment. One of the key features of this program is the 3% down payment assistance loan, which can provide borrowers with up to $15,000 to help cover the initial costs of purchasing a home.
This program is structured as a first and second lien loan, with no interest or monthly payments required on the second loan. The second loan must be repaid when the first loan is paid off, but borrowers have the option to make voluntary payments prior to the payoff date.
- Our exclusive program allows borrowers to purchase a home without a down payment
- Qualified borrowers can receive a 3% down payment assistance loan, up to $15,000
- The program consists of a first and second lien loan
- No interest or monthly payments are required on the second loan
- The second loan must be repaid when the first loan is paid off, with optional payments available prior to payoff
- Borrowers must have an income at or below 80% of the Area Median Income (AMI) for the property address and meet Home Possible® guidelines
- Very-low income borrowers at or below 50% AMI (VLIP borrowers) receive a $2,500 credit as part of the 3% assistance, which does not need to be repaid
- Borrowers with a FICO score of 620+ and an LTV of equal to or greater than 95% can qualify for up to 97% LTV
To be eligible for this program, borrowers must meet certain criteria, including being at or below 80% of the Area Median Income (AMI) for the property they are purchasing. Additionally, borrowers must meet Home Possible® guideline requirements.
For very-low-income borrowers whose qualifying income is at or below 50% AMI, they may receive a $2,500 credit as part of the 3% assistance. This credit does not need to be repaid by the borrower and can help lower their debt obligation from the second lien.
In order to qualify for this program, borrowers must have a FICO score of 620 or higher and a Loan-to-Value (LTV) ratio equal to or greater than 95%, up to 97%. Additionally, at least one borrower must be a first-time homebuyer and meet HomeOne® guideline requirements. A FICO score of 700 or higher is required, with an LTV greater than 95%, up to 97%.
Overall, MortgageDepot’s Zero Downpayment Mortgage program is a game-changer in the world of home financing. It provides a unique opportunity for borrowers to purchase a home with no money down, making homeownership more accessible and achievable for many individuals and families.
